Client impact: The system will be down for around 15 - 30 minutes. Client systems will not be able to communicate with Deribit during this time.

Key changes:

- FIX MMP scope change, FIX clients recommended adding trade scope to current production keys, test setup before release and remove account scope after release.

- Various smaller changes.

Release notes

Deribit will soon launch trading in Linear USDC Options. Options that trade like any tradfi market, priced and margined in USDC, tracking a USDC-based index.

Benefits:

• Priced and margined in USDC
• Simple P&L, linear payoff
• The ability for margin offset for covered call strategies (long SOL, short SOL OTM calls)
• Access to altcoins like SOL, MATIC and XRP in a capital-efficient way
• Expiries: two daily options, two weekly expiries, and one monthly.

Timelines:

• 12 Feb - Instruments become available in production in suspended / non-trading mode 9 AM UTC
• 13 Feb Release - Mass quotes functionality for market makers 9 AM UTC
• 27 Feb XRP (Ripple chain), MATIC (Polygon chain), SOL (Solana chain) wallet launch and USDC spot pairs to commence trading. Deposit addresses can be created on the wallet page as of 27 Feb.
• 6 March - Launch of SOL Linear USDC Options
• 12 March - Launch of XRP + MATIC Linear USDC Options

Contract Multiplier

Deribit will implement a contract multiplier. When the multiplier is 100 it means when trading 1 lot the client would actually buy or sell 100 options. When trading for example 1 SOL option contract at a price of USD 5.10 the settlement of that trade will show 10 * 5.10 = USD 51. Each underlying could have a distinct multiplier given the wide range of different prices the altcoins trade at: SOL: 10 -  XRP: 1,000 - MATIC: 1,000

Market Maker quote requirements - Market makers that fulfil the following obligations will participate in the incentive pool of USDC 110k per month 

• Quoting overall for general incentive: 80%
• Quoting weekends for extra incentive: 80%
• Quote all three classes (all SOL, XRP and MATIC options) with delta 10 up to and including the first ITM strike
• The spread will need to satisfy the following inequality: max (6 ticks, min(0.2 * bid, 0.04*underlying))
• Min quantity of 10 contracts on bid and 10 contracts on ask for each instrument for all underlyings
• Rate limits - participating MMs will be given 400 messages per second to quote all three underlyings.
• Ability to use Mass Quotes (MQ) on linear options. Deribit will not permit using the MQ functionality on linear options for MMs not participating in the incentive programme. MMs will get MQ rate limits of 15 ps.

More info:

• Deribit Knowledge Base 
• Mass quote specs

We want to inform you about important changes to our margin model variables, designed to enhance risk management in light of potential rapid price and volatility movements. These adjustments are aimed at bolstering our risk management framework and providing a greater protective buffer for our users. Please take note of the following updates:

👉 These changes will only affect Portfolio Margin users

1️⃣ Price Range

• On Friday 27 October 9 AM UTC Deribit will increase the Price Range variable from 15% to 17.5% 
• On Monday 30 October 9 AM UTC Deribit will further raise this variable from 17.5% to 20%

2️⃣ Volatility Range

• We will gradually increase the Volatility Range Up by 5% per day from 45% until it reaches 60%.
• The increments will occur as follows:
• Friday 27 October 9 AM UTC from 45% to 50%
• Monday 30 October 9 AM UTC from 50% to 55%
• Tuesday 31 October 9 AM UTC from 55% to 60%

All variables currently in place can be found on the portfolio margin page (if your account is on Portfolio Margin).

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👉 These changes will affect all users (both Standard Margin and Portfolio Margin)

3️⃣ Vega Threshold for Margin Scale-Up

• Short Vega Threshold: 400k threshold. The vega is summed across BTC and ETH and summed across the full account of the user (main + subaccounts)
• Action: A short vega position above the Short Vega Threshold would (with 48 hours notice) increase the Maintenance Margin by 20% in BTC and ETH on the main and all subaccounts of the user
• Upon exceeding the threshold, Deribit would notify the user. 48 hours after being notified, if a user is still exceeding the threshold, then Deribit will increase Maintenance Margin by 20%.
• The limit can be found in the Short Vega Threshold for Margin Scale Up section on this page

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👉 These changes will only affect Standard Margin users

4️⃣ Reduction of max leverage for dated inverse futures (does NOT affect perpetual)

On Monday 30 October 9 AM UTC we will change the max leverage  permitted for dated BTC and ETH futures from 50X to 25X;

• BTC IM: 4% + (POS Size in BTC) * 0.005%
  
• BTC MM: 2% + (POS Size in BTC) * 0.005%
• ETH IM: 4% + (POS Size in ETH) * 0.0004%
• ETH MM: 2% + (POS Size in ETH) * 0.0004%

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We believe that these adjustments will contribute to a safer trading environment and protect the market and its clients from more extreme market conditions. Margins locked on Deribit for any open position can always be monitored real-time using this endpoint.  Deribit remains committed to providing the best trading experience possible.